Once again, the euro is getting smashed, as it’s below $1.22
There are two stories roiling markets.
1) There’s the report that Greece may already be trying to renege on the austerity measures it agreed to as part of the big three-year bailout.. That’s a bad sign.
2) There’s an FT report about China possibly reviewing its Euro bond holdings. Frankly we’re sceptical on that last one. The last thing China needs is for the Euro to weaken more, and put its Europe-dependent exporters at a further disadvantage.